GLOBAL REPORT—When it comes to trends, luxury hoteliers caution against jumping on bandwagons.
“At the luxury level, you have to be careful to not be overly focused on trends,” said Helen Smith, VP of sales and marketing for The Dorchester Collection.
She said the desire for “voluntourism,” “staycations” or “pop-culture travel” come and go. But what will always be in style is high-touch service, the ability to curate unique experiences and well-maintained properties.
Robert Warman, CEO of Langham Hospitality Group, agreed. He said the luxury traveler won’t be swayed by trends, “so the goal for any hotel that defines itself as luxury is to create an experience that is dictated by customer expectations and desires.”
He said luxury hoteliers are not the creators of the guest experience, but rather the enablers, allowing guests to craft their own experiences.
“It all comes down to service and that is something that is not going away,” Warman said.
Luxury guests are the best resources for isolating trends coming online, Warman said, and help to identify what hoteliers need to add, remove or enhance to keep guests returning.
“If you are open to listening to what they have to say, you will find that you are ahead of, even beyond, the trends,” Warman said.
“It’s a case of creating trends rather than following them,” said Michael Crompton, co-founder of Luxury Travel Intelligence, a membership-based review site. “Think beyond the obvious and be creative. Your biggest market is the guest who has just checked out. What can you offer them in future weeks and months that will bring them back sooner and more frequently?”
Here’s what luxury hoteliers should have their eyes on this year.
Help from a strong economy
While the wealthy are typically more resilient to economic downturns, the luxury sector always benefits from a strong economy because of aspirational travelers.
Bernhard Bohnenberger, president of Six Senses, said luxury operators have historically found themselves less affected by the market.
“No matter the economic climate, our guests are seeking an escape that allows them to relax and de-stress,” Bohnenberger said. “Ultimately they want to take a break from their routines and enjoy a fresh view on life and a new culture.
“But improving economies help the travel industry on a larger scale and in turn everyone benefits from destination marketing and all industry efforts.”
Marco Novella, COO of Grace Hotels, said an improving economy certainly allows the luxury customer to spend more; however, this customer is equally as demanding and aware of the available choices.
“We are not just competing with other hotels in our peer group but also with other forms of consumer consumption—from buying a luxury watch to having a celebrity chef cook in your own home,” Novella said. “The financial crisis has all made us stronger, leaner and more in tune with our customers.”
Milton Pedraza, CEO of the Luxury Institute, said a long-term trend is for wealthy consumers to spend more on luxury travel and leisure than on luxury goods.
“On the other (hand), there are uncertainty factors such as fear of terrorism, a strong dollar and the slowing global economy that have slowed down the flow on individual luxury travelers,” Pedraza said. “Top luxury hotel brand executives tell me they see a bit of a slowdown from affluent individuals, while corporate business is still healthy.
“Long-term luxury travel looks solid, but short term there are headwinds. Not terrible but challenging.”
Sources said that while luxury travelers might be affluent, they still want as much as they can get for their money.
“Savvy operators realize they can still win business by delivering a point of difference, luxury-wise,” Crompton said. He said examples include: a complimentary in-room bar; free airport limo services; free, curated local cultural experiences; or butler service.
“So while rates may be higher in many ways, the luxury traveler is better off if they shop around for such perks and benefits,” Crompton said.
Expanding on experiential
Although “experience” and “experiential” have become buzz words in hospitality, especially at the market’s upper end, operators are becoming more explicit about what they mean by those words.
Bohnenberger said he anticipates luxury hospitality moving further into the experiential.
“The future is all about providing guests with unique offerings that are unexpected, adventurous and memorable,” he said.
His company focuses on delivering unique experiences that celebrate local culture and traditions in the hotels’ respective locations.
“Learning and getting to know about the destination is what guests are asking for, so the focus is on special activities such as arts and crafts, food and cooking classes, and localized wellness options,” Bohnenberger said.
Novella agreed that guests are looking for new experiences, adding that luxury travelers seek to optimize every minute of their leisure travel. With that said, he added quality and service delivery are becoming what’s expected and are no longer viewed as differentiators.
“Guests want to experience things that perhaps take them out of their comfort zones,” Novella said. “This could vary from travelling solo to adventure travel and for the more intrepid actively engaging in community projects, traditions and festivals.”
High-end hotels are more likely to have the resources to create truly local experiences, sources said.
For example, Warman said The Langham, Boston supports the Massachusetts Oyster Project by recycling the oyster and seafood shells from its dining outlets to create oyster beds for future local seafood sourcing.
“It has been so successful that Langham Place, New York has taken up with the same organization in New York,” he said.
“With things becoming a little more relaxed, it allows savvy operators to bring in more ‘guest-facing’ staff from the local community,” Crompton said. “This is where such initiatives have to start, then develop further in terms of local culture, events, cuisine on the back of that personal presence.”
Sophisticated but secure
Wealthy travelers are probably more cognizant about security issues, but perhaps less affected by it, according to sources.
“Luxury travelers tend to be sophisticated with a global outlook on life and travel,” Bohnenberger said. “They usually are less concerned about security as they understand that security problems are often localized and can be avoided and hence are not as easily discouraged by the mass media sensationalizing issues.”
Warman said leisure travelers will always be attracted by such iconic locations as New York City and Paris—no matter the situation.
“But, as the recent attacks in Paris have shown us, hotels have to be prepared to take a financial hit after a terrorist threat has been made apparent. It is the world in which we live now,” he said.
Similarly, Pedraza said, “Luxury travelers are extremely connected and aware of what is happening in the world daily; maybe even moment by moment. So they are cautious about safety, but not paranoid.
“Life must go on for them, and they are not wasting time. As long as the affluent of all generations are earning, they will travel.”